Premium housing demand witnessed growth in
the first nine months of 2025, despite a 12% Year -on -Year decline in overall
unit sales: JLL
Apartments valued at INR 1 crore and above (premium housing) recorded 4%
Y-o-Y growth in sales during first nine months (January-September) of 2025
- Apartments priced at INR 1 crore and above
accounted for approximately 62% of total sales in the first nine months of
2025, up significantly from 52% in the same period of 2024.
- This increased contribution was primarily
driven by 10% growth in demand for the INR 1.5-3.0 crore housing segment.
- While premium homes gained market share in
year-to-date (YTD – January to September) sales, the mass segment’s (sub-INR
1 crore) share dropped from 48% to 38% compared to the same period last
year.
- Bengaluru, Mumbai, and Pune maintained their
leadership with more than 60% share in residential sales volume across
India's top seven cities during January-September 2025, despite a 9%
decline in their combined sales.
- Despite a marginal Y-o-Y decline in overall
project launches during YTD 2025, launch of homes priced over INR 1 crore
surged by 5%.
- Kolkata,
Chennai, Pune and Bengaluru
recorded significant growth in residential launches during the first nine
months of 2025 on a Y-o-Y basis.
- In Q3 2025, Chennai led the Y-o-Y property
price growth, while Bengaluru and Delhi NCR followed closely.
Mumbai, October 28, 2025: While
total residential sales fell 12% Y-o-Y to 202,756 units in January-September
2025, premium homes valued at INR 1 crore and above posted 4% growth over the
same period. This is especially evident in the INR 1.5-3.0 crore category,
which saw demand increase by approximately 10% compared to January-September
2024. Despite falling sales volumes attributed to sustained high property
prices, seasonal monsoon impacts, pre-festive lull in housing demand, and
uncertainty in the economic environment, the Indian housing market underwent
recalibration while maintaining strong underlying fundamentals, as evident from
increasing sales in the premium housing segment. Growing interest in high-end
and premium residential developments has dampened mass housing market momentum,
evidenced by a significant 30% Y-o-Y decline in sub-INR 1 crore home sales
during the first nine months of 2025.
Consistent with the nine-month pattern, India's top seven cities posted
a 9% Y-o-Y and 2% Q-o-Q sales decline in Q3 2025, totaling 67,980-unit sales,
except Pune and Chennai which posted 14% and 13% Y-o-Y growth when compared to
Q3 2024 Despite the temporary slowdown, Bengaluru, Mumbai, and Pune each
exceeded 12,000-unit sales during the quarter, together representing
approximately 63% of total Q3 sales—an increase from their 60% share in Q3
2024. The premium segment showed marginal Y-o-Y growth in sales during Q3 2025,
however homes priced within INR 1.5-3.0 crore experienced 14% Y-o-Y growth.
Demand in the sub-INR 1.0 crore range decreased by 23% Y-o-Y compared to the
same period last year.
Home sales decline 12% Y-o-Y during
January-September 2025, third quarter down by 9% YoY
|
Residential Sales (in units) |
Q3 2025 Sales (No of units) |
Q3 2024 sales (No of units) |
Jan-Sep 2025 sales (No of units) |
Y-o-Y Growth in sales (Jan-Sep 2025 over Jan- Sep 2024) |
|
Bengaluru |
15,630 |
15,969 |
45,815 |
-11% |
|
Chennai |
3,926 |
3,431 |
10,691 |
15% |
|
Delhi NCR |
8,585 |
14,141 |
27,906 |
-29% |
|
Hyderabad |
8,423 |
8,644 |
25,005 |
-5% |
|
Kolkata |
3,925 |
4,071 |
10,672 |
-21% |
|
Mumbai |
13,628 |
16,465 |
42,398 |
-16% |
|
Pune |
13,863 |
12,295 |
40,269 |
1% |
|
India |
67,980 |
75,016 |
202,756 |
-12% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai;
Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad
and Sohna.
Data includes only apartments. Rowhouses, villas, and plotted
developments are excluded from our analysis.
“January-September 2025 showed a shift toward a "value-driven"
market with premium housing demand driving overall sales despite 12% Y-o-Y
drop-in total units sold. Interesting to note, demand for projects launched
during the same quarter has been witnessing sustained momentum, with Q3 2025 following
this trend. Even for the period between January to September 2025,
approximately 24% of sales were contributed by properties launched during the
first nine months of 2025, marginally higher than the share observed during
January-September 2024.” said Dr. Samantak Das, Chief Economist and Head of
Research and REIS, India, JLL.
Premium housing sales rise by 4% in
January-September 2025 amid shift to value-focused market
|
Ticket Size Break Up - Sales (in INR) |
Jan-Sep 2025 sales (No of units) |
Y-o-Y Growth (Jan-Sep 2025 over Jan-Sep 2024) |
% share in Jan-Sep 2025 sales |
% share in Jan-Sep 2024 sales |
|
Less Than 50 Lakh |
19,772 |
-33% |
10% |
13% |
|
50 Lakh – 1.0 crore |
57,275 |
-28% |
28% |
34% |
|
Sub 1 crore |
77,047 |
-30% |
38% |
48% |
|
1.0 crore - 1.5 crore |
43,007 |
0% |
21% |
19% |
|
1.5 crore – 3.0 crore |
51,467 |
10% |
25% |
20% |
|
3.0 crore – 5.0 crore |
19,180 |
3% |
9% |
8% |
|
Above 5.0 crore |
12,055 |
1% |
6% |
5% |
|
Above 1 crore |
125,709 |
4% |
62% |
52% |
|
Total |
202,756 |
-12% |
100% |
100% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Construction cost hikes dampen new housing
project launches
“While premium housing saw strong demand, developers were cautious with
new mid-range and affordable launches where demand has been sluggish over the
last few quarters. Q3 2025 brought 70,915 new homes to market, totalling
225,001 units for first nine months—down just 1% annually. Kolkata, Chennai,
Pune, and Bengaluru recorded strong annual growth in launched units. Slower
launches helped stabilize inventory and improve absorption, showing market
maturation,” said Siva Krishnan, Senior Managing Director (Chennai &
Coimbatore), Head - Residential Services, India, JLL.
New Home Launches Decline: Chennai Sets
Quarterly Record
|
Residential Launches (in units) |
Q3 2025 Launches |
Q3 2024 Launches |
Jan-Sep 2025 Launches |
Y-o-Y Growth in launches (Jan-Sep 2025 over Jan-Sep 2024) |
|
Bengaluru |
12,686 |
13,376 |
47,237 |
11% |
|
Chennai |
5,748 |
3,948 |
17,781 |
38% |
|
Delhi NCR |
8,697 |
13,576 |
30,430 |
-17% |
|
Hyderabad |
8,865 |
11,320 |
28,981 |
-32% |
|
Kolkata |
6,099 |
1,248 |
15,099 |
168% |
|
Mumbai |
13,605 |
16,296 |
42,113 |
-20% |
|
Pune |
15,215 |
9,110 |
43,360 |
23% |
|
India |
70,915 |
68,874 |
225,001 |
-1% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Premium housing segment price growth offsets
overall sales volume decline
Home prices in India's seven major cities maintained their upward
trajectory in Q3 2025, posting annual increases ranging from 6% to 16%. Kolkata
topped the list with 16% growth, followed by Chennai at 14%, while Delhi NCR
and Bengaluru both recorded 13% growth. Developer focus on higher-margin
premium developments, elevated construction costs, and sustained buyer demand
drove broad-based price appreciation across all key markets.
Outlook: Sustained growth trends expected to
prevail
The Indian housing market is moving toward a balanced phase after strong
growth, as rising property prices create affordability concerns and sales
slowdown. Home prices will keep rising due to strong luxury demand, low
inventory, and developers' pricing power, even as sales moderate. Overall
volume growth will slow, but luxury and premium segments will drive the market.
Average transaction values will continue growing as buyers prefer high-end
properties. Major listed developers are gaining market share through strong
brands and execution skills, while others are expanding from luxury into
mid-income projects to reach more buyers and reduce risk. Government support
will continue, and investor confidence remains strong with steady private
equity and foreign investment flows
